Finanzplatz Deutschland: Modernisation and regulatory reform
| Published date | 01 April 1998 |
| DOI | https://doi.org/10.1108/eb024985 |
| Pages | 351-356 |
| Date | 01 April 1998 |
| Author | Norbert Walter |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 6 Number 4
Finanzplatz Deutschland: Modernisation and
regulatory reform
Professor Norbert Walter
Received: 24th August, 1998
Deutsche Bank Research, Guiollette Strasse. 48. Frankfurt am Main, D60325, Germany;
tel:
+49 69 910 31709; fax: +49 69 910 31827; e-mail:klaus.deutsch@db.com
Economic policy analysis and forecasting
were the focus of Norbert Walter's interest
over much of the last two decades. During
his years at the renowned Kiel Institute for
World Economics, where he became Pro-
fessor and Director in 1978, he was con-
sultant for German economic policy
makers. In the mid-1980s he studied demo-
graphics and its interaction with economic
dynamism at Johns Hopkins University. He
is a regular commentator in printed and
electronic media at home and abroad,
particularly in London. His determined
market-economy orientation is best
reflected in his books 'What would Erhard
do today', 'More market - less interven-
tion', 'On the new wealth of the nation'.
Since 1992 Norbert Walter has been mana-
ging director of Deutsche Bank Research,
Deutsche Bank's think
tank,
covering a
wide spectrum of issues ranging from
country rating to company analysis.
ABSTRACT
The modernisation of the German capital
market, Finanzplatz Deutschland, is under
way. In the
course
of the 1990s, efficient orga-
nisational structures of stock and futures
exchanges have been established and various
equity market segments introduced. The evolu-
tion of financial markets in Germany is
encouraging, even though large gaps, such as
corporate
bonds and mid-caps, remain. The reg-
ulatory
framework has been adjusted too. Bank-
ing, insurance and securities trading are now
fully covered by prudential control and supervi-
sion.
The mutual fund industry has also been
put on a more liberal footing, yet the legal basis
for pension funds still needs to be set up. Some
centralisation and streamlining of supervisory
institutions along British lines may well
become
appropriate, once the impact of European
Monetary Union (EMU) is felt more clearly.
The German economy, the third largest in
the world, is known for its industrial excel-
lence in the production of cars and chemi-
cals.
In financial services, Germany has yet
to gain a reputation for top quality.
German banks are already providing com-
petitive services to their customers, but the
German capital market is still a world apart
from Wall Street. Finanzplatz Deutschland,
however, is slowly adapting to interna-
tional standards and the forces of global
competition.
The common goal of the German gov-
ernment and the private sector is to estab-
lish the most attractive financial centre in
continental Europe. Important changes in
the regulatory framework of the money,
bond and futures markets were introduced
in the early 1990s, and organisational
changes of the stock exchanges were also
brought forward. A radical overhaul of the
regulatory and supervisory institutions is
not to be expected, but the impact of
global financial markets and of European
Journal of Financial Regulation
and Compliance, Vol. 6. No. 4,
1998, pp. 351-356
© Henry Stewart Publications.
1353-1988
Page 351
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